This paper examines the stability of deterministic steady-states in a class of economies where the state -variable is one dimensional and where agents use Bayesian techniques to form expectations. Thr dynamics with learning are locally convergent if the prior mean is close to a stable perfect...

Consider a one step forward looking model where agents believe that the equilibrium values of the state variable are determined by a function whose domain is the current value of the state variable and whose range is the value for the subsequent period. An agent's forecast for the subsequent...

This paper examines the stability of deterministic steady-states with a one dimensional state-variable and a smooth, recursive updating rule. It is shown that the only possibly stable steady states are those associated with random walk beliefs, provided there is motion on a center manifold,...

It is known through earlier work that deterministic temporary equilibrium dynamics with least squares learning are locally divergent from a steady state whenever the initial parameter estimates of the agents is high. This paper establishes that the learning dynamics may be globally stable in...